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Forex24 Review - is it scam or safe?

Forex24  Review - Is forex24.com scam or good forex broker?

RATING: 3 / 0 REVIEWS Forex24
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Trading Accounts & Conditions

 

Account type Minimum deposit Maximum leverage Spread
Mini Bronze $100 1:50 From 2.9 pips
Classic Silver $500 1:400 From 1.90 + $5.90 commission per lot 
Premium Gold $1,000 1:200 From 1.40 + $4.90 commission per lot 

 

Forex24 is a forex broker, which provides the trading conditions mentioned in the table above. While the maximum leverage ratios seem may seem chosen a bit chaotically, the rest of their offer seems coherent. As a whole, the company leaves mixed feelings and the only way to find out why is to go through the full review. 

 

Forex24 Advantages

 

CySEC regulation

The biggest factor when comparing brokers (and the main contributor to this one’s score) is the regulatory aspect. Forex24 is owned by Lydya Financial Ltd., which is overseen by the Cyprus Securities and Exchange Commission (CySEC). This is a globally renowned regulatory agency, which is also a preferred choice for those who are looking to do business in the EU legitimately.

 

STP business model

A Straight Through Processing broker is one which doesn’t take the other sides of their clients’ trades (i.e. will not directly profit if you loose money with them). Instead all the transactions are executed at an external liquidity pool. While this isn’t that important when it comes to tightly regulated companies, some people will prefer this as opposed to a Market Maker (a broker, profiting from client losses).

 

Trading with MetaTrader4 

Forex24 provides access to the global markets via a platform, which doesn’t need introduction. This is the industry leading software for over a decade and while it may seem outdated, it still does the job fine (keep in mind, a lot of updates have been released over the years). One could find some of the best charts on MT4, alongside with a lot of customization options. Automated trading can also be done, via the so-called Expert Advisors. 

 

Convenient payment methods

Forex24 allows traders to make payments via Bank Transfer, Credit Card, Skrill and Neteller. This is an impressive list, featuring two of the most popular e-wallets.

 

Decent minimum deposit 

The entry bar set by this broker is acceptable. While there are companies taking clients with even smaller initial investments, if you can’t afford to risk $100, financial markets should be the least of your priorities. No matter what your current situation is, be sure to only deposit funds you are willing to risk.

 

High leverage provided 

As we stated in the beginning, the ratios offered by this broker are distributed a bit randomly. Still, all of them will allow one to trade fairly efficiently, with the medium sized clients (betweem $500 and $1,000) getting up to 1:400. Keep in mind, trading with higher leverage does not guarantee better results – in fact it is frequently quoted as the main reason why newcomers loose money in the markets.

 

Connected to ZuluTrade

As well as offering the standard trading features, Forex24 is also connected to ZuluTrade. This is a social trading network, which much like the typical ones, like Facebook, allows users to share their activity, only this time it comes to the deals they make on the forex market. Another key difference and the reason for this system’s existence is the fact one can copy the activity of another trader, in essence investing in him. See the link below to learn more and find other brokers also offering this service.

 

>>A list of ZuluTrade brokers<<

 

Forex24 Disadvantages

 

High costs of trading

The most unpleasant thing when it comes to Forex24 is the fact they aren’t competitive, when it comes to spreads. While the 2.9 pips level for the smallest account type is fairly straightforward, the rest of the levels require a bit of a clarification due to the additional fees.

 

These charges are usually mentioned on a per lot, “per trade” basis, meaning you will only pay once, when opening a position. Each dollar in such commissions is the equivalent of 0.1 pips in effective spread (on pairs where USD is the second currency). 

 

This makes the Classic/Silver account at Forex24 being charged a minimum of 1.9 + 0.59 ($5.90 per lot) = 2.49 pips and 1.4 + 0.49 = 1.89 pips for the Premium/Gold account. The latter isn’t that bad but still requires a substantial investment.

 

>>Compare forex spreads here<<

 

No one click demo

One can’t simply create a demo account at Forex24. Instead he has to wait for the company to manually approve him. This policy may protect the servers from over-crowding, but is simply not effective in the twenty first century. After several hours of waiting, we weren’t approved:

 

 

Conclusion

 

Forex24 is a CySEC regulated forex broker. While this factor brings a lot of viability to their offer, the spreads simply aren’t up to par with the rest of the industry. They aren’t ridiculously wide, but will definitely have an impact on your bottom line, if you are trading for a long period of time. 

 

There are many reasons why Cypriot brokers are considered credible trading partners. They local Commission is under the European MIFID umbrella and one of the most active watchdogs, when it comes to implementing rules for the companies it oversees. We will only mention two of the principles which guarantee the security of your funds below.

 

>>Find a more competitive CySEC broker here<<

 

1) segregation of client accounts – this is a common rule within the EU, which simply means your broker can’t take your investment and leave. This is done via special bank accounts, which have built-in protection.

 

2) insurance against your broker going bankrupt – All CySEC regulated companies must participate in the local Investor Compensation Fund. This is a system, which will repay you for funds you had with a broker, who has gone bankrupt (limited to €20,000).

 

The pros and cons of Forex24:

 

Pros Cons
CySEC regulation High costs of trading
STP business model No one click demo
Trading with MetaTrader4   
Convenient payment methods  
Decent minimum deposit   
High leverage provided   

Connected to ZuluTrade

 

 

Latest news about Forex24
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Traders` reviews for Forex24

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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